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Targeting a positive cash flow in a self-storage space is more work than just targeting a deal. You have to look at the ratio of the rent to cost spaces, the quality of the product you are buying, site conditions, the configuration of the building, and replacement cost. The way to survive in your business is cash flow. Cashflow is the key to success in your business. It gets you through the downturn. It pays your operating expenses and your distributions to your investors. Being cash-flow-focused will help you build your financial empire in real estate. In this episode, Jacob Vanderslice will teach you how to cut costs, put a good product out there, and build a cashflow-positive self-storage business\\xa0

Jacob is the Principal at VanWest Partners, a Denver-based real estate firm, focusing on the acquisition and management of self-storage centers across the United States. They are established and have a track record of currently $195 million in real estate assets. VanWest Partners are driven by the commitment to delivering executed and adaptable strategies with an institutional investment approach. Their goal was to build their brand and drive quality conversations that create more opportunities and gain.

During this episode:

[00:28] Episode intro and a quick bio of the guest; Jacob Vanderslice

[01:31] Being agile and adaptable to scale and remain competitive as a small business

[05:05] A $33 million deal that had an iteration process and the lessons that they learned\\xa0

[07:12] Jacob\\u2019s bet for the economy and its impact on the self-storage space\\xa0

[10:16] How to shift your business plan to protect your cash flow from economic downsides

[12:31] VanWest\\u2019s third self-storage investment fund and their developments

[14:17] Jacob\\u2019s advantages in the development market and how they find deals\\xa0

[16:01] The risk between building versus buying an existing storage investment\\xa0

[18:27] VanWest development projects and how they are scaling their efforts \\xa0

[20:16] VanWest investors and the deals they are putting out there for them

[23:48] VanWest focus to grow and scale their portfolio in the next few years

Notable Quotes\\xa0

• Being agile and being adaptive services well in real estate. [01:32]
• The model will tell you whatever you want it to tell you; You can lower the revenue and the cap rate, but you\\u2019ve to believe what the model is telling you and be committed to executing what it says you need to execute.\\xa0 [06:09]
• As long as we\\u2019re growing revenue and the operating income, and hitting our business plan with every deal we buy, the rest of the elements in the real estate equation will take care of themselves. [09:05]
• Cashflow is king; net worth is not what matters; it\\u2019s your recurrent revenue streams that will allow you to survive.\\xa0 [10:23]
• Leverage doesn\\u2019t make bad deals good, it makes a good deal better, but if the amount is too high and you can\\u2019t service the debt, you get a problem [12:02]
• Every real estate business needs three things, deal flow, capital and operation, and they go hand in hand.\\xa0 [25:03]

Connect With Jacob

Company Website: https://www.vanwestpartners.com/team

LinkedIn: https://www.linkedin.com/in/jacob-vanderslice-02905b16b/

*****Thank you so much for listening to the Making Money in Multifamily Real Estate Show! This show covers everything to do with Multifamily Real Estate Investing to help you, the listener, become an expert in your real estate ventures. The host, Dave Morgia, brings on guests who are already experts in their respective fields to discuss what principles and practices they follow that have helped them achieve their success so far.